Last checked at 9 Mar 2016 14:47
9 March 2016
Real Estate Investors PLC
('REI' or the 'Company' or the 'Group')
Property Acquisition: Boundary House, Wythall Green Way, Birmingham
Real Estate Investors plc (AIM: RLE) the Birmingham based property group and UK listed Real Estate Investment Trust, is pleased to confirm the acquisition of an investment property in Wythall, Birmingham for a consideration of £2.45 million in cash, producing total rental income of £243,547 p.a. at a net initial yield of 9.39%.
The modern two storey office building comprises 21,294 square feet with 117 car parking spaces. The property is well located in a strategic position on the southern side of Birmingham, close to junction 3 of the M42, with access via the A435. The building comprises a high specification office building. The property is fully let to Grafton Group (UK) PLC on three leases with WAULT at purchase of 6 years and 5 months - since taking the first lease in 2013, the company has expanded to occupy the whole building - with a current rental income of £243,547 per annum.
Paul Bassi, CEO of REI, commented: "This is an excellent addition to our growing portfolio and provides immediate income at a purchase price that we feel offers good prospects for capital growth.
ENDS
Real Estate Investors PLC Paul Bassi
| +44 (0)121 212 3446 |
Smith & Williamson Corporate Finance Limited Azhic Basirov/David Jones
| +44 (0)20 7131 4000 |
Liberum Jamie Richards/Tom Fyson
| +44 (0)20 3100 2000 |
Gable Communications Limited John Bick | +44 (0)20 7193 7463 +44 (0)7872 061007 rei@gablecommunications.com |
About Real Estate Investors PLC
Real Estate Investors PLC is a publicly quoted property investment company with a portfolio of over 1,000,000 sq ft of commercial property managed by a highly experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.
The Company's strategy is to invest in well located, real estate assets in the established and proven markets of central Birmingham and the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings. The portfolio has no material reliance on a single asset or occupier.
On 1st January 2015, the Company converted to a Real Estate Investment Trust (REIT). Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities.
The Company aims to deliver capital growth and income enhancement from its assets with the view to implementing a progressive dividend policy. Further information on the Company can be found at www.reiplc.com.